Mongolia-based Chinese miner Mongolian Mining Corporation (MMC) has announced its financial results for the first half of 2013.
In the first half, MMC registered a net loss of $25.2 million, compared to a net profit of $31 million in the same period of the previous year, reflecting a decrease in the average selling price of coking coal products. The company's sales revenues increased by 6.3 percent year on year to $247.8 million, primarily attributable to higher sales volume.
According to data issued by the National Statistical Office (NSO) of Mongolia, the company exported approximately 3.2 million mt of coal products in 2012, representing a share of around 42 percent in Mongolia's total coal exports. In the first half, MMC produced 4.2 million mt of raw coal, increasing by 2.4 percent year on year.
MMC believes that the gradual recovery in coking coal prices will continue into the second half of the current year. By further optimizing the allocation of resources to enhance the integrated mining, processing, logistics and transportation operations, the company will aim to expand its business scale and improve its margins in an effort to return to profitability.
According to MMC, the recovery of demand for coking coal in China and globally will remain highly uncertain in the second half of 2013. Although a stronger than expected rebound in China's exports in July signaled that the world's second largest economy may be stabilizing after a slowdown in the first half of the year, that has prompted the Chinese government to support activity ensuring delivery of its official 7.5 percent growth target for 2013.
